TV industry shake-up: South Korean brands poised to gain US market share amid tariff policy shifts

North America, representing 24% of global TV consumption, is experiencing a major market shift driven by trade policies and tariffs. This blog explores how South Korean TV brands are positioned to gain market share through their Mexican manufacturing operations while Chinese competitors face significant challenges.

In a turn of events in the television manufacturing landscape, South Korean giants Samsung and LG Electronics are positioned to strengthen their grip on the US market. Their strategic manufacturing presence in Mexico has become a crucial advantage as the industry navigates complex tariff policies and trade tensions that are reshaping competitive dynamics across the sector.

The Mexican advantage

The television industry's resilience to recent tariff policies stems from a strategic shift that began in 2019. Manufacturers initiated a significant production migration to Mexico, resulting in approximately 65% of US market televisions now being imported from the region. This positioning has proven particularly valuable under the United States-Mexico-Canada Agreement (USMCA), which maintains zero tariffs for qualifying products.

Manufacturers must meet specific requirements to benefit from these advantages, including proving that 60% of the manufacturing value is added in Mexico and obtaining proper certification through certificate of origin (COO) and regional value content (RVC) documentation. This requirement creates a natural advantage for companies with established Mexican operations, while presenting significant barriers for new entrants or those attempting to shift production quickly.

The Korean advantage

Samsung and LG have emerged as the leading players in this evolving landscape. Their substantial manufacturing capacity in Mexico provides them with a significant competitive edge, particularly in the large and ultra-large TV segments. Both companies have traditionally maintained strong positions in the premium segments, with significant presence in 65", 75", and 85"/86" models.

Their proprietary platforms, Samsung Tizen and LG webOS, add another layer of competitive advantage, allowing them to offer unique features and experiences to consumers. This technological edge, combined with their manufacturing capabilities, positions them well for potential market expansion into smaller size segments while maintaining their premium market position.

Impact on Chinese manufacturers

Chinese manufacturers face considerable challenges in the current environment. Companies like Hisense and TCL have capacity constraints in their Mexican operations, limiting their ability to serve the US market effectively. Their expansion plans in Vietnam have become uncertain due to new tariff considerations, and the 13.9% tariff on TVs from South-Eastern Asian countries further complicates their competitive position.

The situation is particularly challenging for these manufacturers who have traditionally competed strongly in the small and mid-size TV segments. Their ability to maintain competitive pricing while absorbing new tariff costs may significantly impact their market strategy and profitability.

Looking forward

The display industry has adopted a notably cautious stance amid market uncertainties. TV makers previously planning to shift production from Mexico to Eastern Asia are now maintaining their Mexican operations, while Vietnamese capacity is being redirected to serve Asia, Oceania, and European markets.

The recent 90-day pause on tariffs starting April 10, 2025, provides manufacturers a brief window to adjust strategies. Mexico's supply chain resources are becoming increasingly critical, requiring careful management of production capacity.

Consumer impact

TV prices in the US market will experience relatively limited impact from the tariff increases, particularly for TVs imported from Mexico, which account for 65% of the US market. However, consumers who typically purchase small to mid-sized TVs from Southeast Asian manufacturers may face higher prices due to the 13.9% tariff imposed on these imports.

For consumers and industry observers alike, this period represents a fascinating case study in how global trade policies can reshape market dynamics and create unexpected winners in the highly competitive consumer electronics sector.

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